Cryptocurrency exchange Binance is in talks with the Dubai World Trade Center Free Zone to obtain a license to operate as a virtual asset service provider.
Last year, Binance received approval from the Central Bank of Bahrain to operate in the country. According to an unnamed Bloomberg source, the exchange has now begun implementing the next stage to expand its presence in the Middle East and announced the start of negotiations to obtain a license to operate in Dubai. Binance CEO Changpeng Zhao expressed his approval of the Dubai government for passing a law regulating virtual assets.
“Clearness of regulation is very important. The new virtual asset law in Dubai is a big step forward.” wrote is he.
This month, Dubai authorities approved the law on virtual assets and formed a new agency that will deal with the regulation of the cryptocurrency industry. As part of the approved law, the Dubai Virtual Assets Regulatory Authority (VARA) was created, which will control the circulation of crypto assets in the UAE, ensure the protection of users’ personal data, and monitor cryptocurrency platforms and digital wallets.
For Dubai, this move was part of a government program to attract the world’s largest cryptocurrency companies to the country. The United Arab Emirates is ready to issue federal licenses for virtual asset service providers by the end of Q1 2022. According to Chainalysis, from July 2020 to June 2021, the UAE has become the third largest cryptocurrency market in the Middle East with a transaction volume of about $26 billion, behind Turkey and Lebanon.
Source: Bits
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